Choose the correct answer А, В or С from the list opposite.

1. Companies usually have a … with senior managers at the top and employees at the bottom.

2. McDonald's has a very big … of the fast food market.

3. Some teachers mark students work using a … from A to E.

4. No one's work is … . We all make mistakes.

5. A perfect economic system may never … .

6 A monopoly means an absolute or complete monopoly.

7. Not all twins are… . Some twins are brother and sister, for example.

8. Sometimes a person's colour or race can be a … to getting work.

9. We use curtains to … light.

10. Countries have been … with each other for thousands of years.

11. The … point is where two things are balanced against each other.

12. Honey is a healthier … for sugar to make things sweet.

13. Everyone should have … to education.

1. A shape  B structure C building

2. A piece  B part         C market share

3. А scale   B point       C grade

4. A good  B better с   C perfect

5. A is        B live         C exist

6. A pure    B good                  C clean

7. A similar B identical C same

8. A gate    B barrier     C block

9. A barrier B close       C block

10. A shopping      B trading   C selling

11. A equilibrium  B middle    C equal

12. A difference    B addition C substitute

13. A access          B openings C entrance

Now read the text again and decide whether these statements are true or false.

1. Market structure describes how competitive a market is.

2     Perfect competition and pure monopoly are opposites.

3     Four conditions are necessary for perfect competition to exist.

4     In perfect competition, every company makes a slightly different product.

5     Perfect competition makes it easy for new companies to start trading.

6     When there is perfect competition, companies are able to set any price they want.

Monopolies

In a monopoly, one company has a much larger market share than any other company. In fact, their share is so big that other companies cannot really compete. When there is a monopoly, the normal laws of supply and demand do not always work. Monopolies come in different kinds, but a pure monopoly is when there is only one company in the market providing a particular product or service. This situation, in fact, is the exact opposite of perfect competition. How do pure monopolies happen?

Some monopolies occur naturally. This happens when a company manages to create an economy of scale. An economy of scale is when variable costs of production increase more slowly than increases in supply. Every company would like to be in this situation. Unfortunately, it's not easy to achieve. Economies of scale are possible for companies which need a lot of money to set up but much less money to run.

A telephone company is a good example. Telephone companies have to spend millions of pounds laying cables. However, once they have made the network, running the system does not cost so much. Any other company that wants to compete will have to make their own network. Not surprisingly, not many bother!

However, the world of business is a jungle, and there are more aggressive ways to create a monopoly. One of these is by making takeovers. This means that a more powerful company buys a smaller one in the same industry. Takeovers happen vertically or horizontally. In a vertical takeover, a company buys companies that supply it with materials or services. For example, a publishing company might buy a printing business. In a horizontal takeover, a company buys its competitors. The competitors then become part of the first company.

One final way a monopoly occurs is for the government to make it happen. This is called a legal monopoly, but not because other monopolies are illegal! It is called a legal monopoly because it is created by law. The government may decide that a competitive market is not good for a certain industry. In this case, it can make one company the only legal supplier. Sometimes, it provides the service itself. This is called a state monopoly. The postal service in many countries is an example of a state monopoly.

Generally, monopolies are not good for consumers. This is because in a monopoly, the laws of supply and demand do not work in the same way. A company with a monopoly becomes a price maker. They have much more power to set the price for their product or service. Also, they don't usually spend money on innovation because they don't need to. The bottom line, as they say, is that monopolies mean less choice for consumers.

Переведите на английский язык:

1.    Структура рынка связана с конкуренцией. Она оказывает влияние на цену.

2.    Рынок совершенной конкуренции имеет ряд особенностей. На нём должно быть много конкурирующих компаний, поставляющих один и тот же товар или оказывающих одну и ту же услугу; все потребители и компании должны обладать полной информацией о рынке; не должно быть барьеров на пути выхода на рынок новых компаний.

3.    Если мы говорим о рынке совершенной конкуренции, важно, чтобы все компании имели доступ к технологии и ресурсам.

4.    На рынке совершенной конкуренции существует много компаний, но ни одна из них не может оказывать влияние на цену.

5.    При монополии доля одной из компаний настолько велика, что остальные не могут конкурировать с ней.

6.    Как правило, монополий не выгодны для потребителей, поскольку монополии определяют цену.

7.    В отличие от естественных монополий некоторые монополии часто образуются более агрессивным методом — путём поглощения других компаний.

Monopolies

1. Complete each sentence with a word from the box.

aggressive cables         illegal innovation

legal naturally    network     occurs

printing      publishing  takeover

l. A … is a set of connections.

2. When one company gains control of another company it is called a … .

3. Raw materials are things like wood or oil that exist … .

4. Electricity travels along … to reach our houses.

5. … people get what they want by violence and force.

6. … companies are responsible for the writing and pictures in books, etc.

7. … companies make books.

8. … is inventing and thinking of new solutions to problems.

9. If something is … it is allowed by law.

10. When something is … it is not allowed by law.

11. If a problem … you will have to deal with it.